Describe how Enron could have been structured differently to avoid such activities. Not having any prior knowledge on the Enron scandal until writing this paper, I found through research that to avoid the activities that Enron went through their structure and some laws could have been different. First our current laws and regulations allow firms to provide consulting services to a company and then provide the audited report about the financial results of those consulting activities. This is a conflict of interest. Private companies like Enron hire and pay its own auditors. This again is a conflict of interest built in the legal system because the auditor has an incentive not to issue an unfavorable report on the company that is paying him or her. Another issue is moral standards got corrupted. Money was being made which lead to cutting corners, taking shortcuts, the focus became getting your own share because everyone in the company was getting theirs. I believe that Enron, the led managers, and executives started thinking that anything was okay as long as the money kept rolling in. Finally, Enron had no ethics committee, all business was internal, if some type of out sourcing would have taken place then these activities could have been avoided, everyone getting paid out of the same pot may have made these individuals feel that their roles demanded them to act in an unethical manner.
Discuss whether Enron??™s officers acted within the scope of their authority. By all accounts the officers did not act within their scope of authority. Corporate management has the responsibility to shareholders to maximize the value of the shareholders stock. In contract Enron lost sight of their fiduciary duty to maximize their own profit in comparison to their shareholders. Furthermore, corporate management is responsible for deliberately misleading investors, and employees on their financial affairs. Management falsely reported financial growth and strengths to investors. Their scope was to provide insurance and guidance for their investments not misled and falsely informs the shareholders.
Describe the corporate culture at Enron. It is reasonable and companies have the right to ban smoking on their property. My friend worked for a company that banned smoking in cars, in their company parking lot because they wanted a tobacco free environment, not only did they do the ban on smoking they would do weight loss challenges, and promote walking around the building on breaks. I can see how this would annoy smokers, but I can also see that the company is trying to promote healthier lifestyles and also have more productive workers. I feel that doing this does take away from a person??™s personal freedom. This is a great incentive motivate employees to quit smoking in ???San Antonio-based USAA is giving $200 to each employee and each dependent to help them stop smoking. The money can be used on smoking-replacement gum, patches and other therapies, including acupuncture and hypnosis. USAA is sponsoring smoking-cessation classes and waiving co-pays on drugs used to help people stop smoking. The bans are expected to gain a greater following as more companies look at tobacco-use statistics. Businesses pay an average of $2,189 in workers compensation costs for smokers compared with $176 for nonsmokers, according to the Journal of Occupational and Environmental Medicine in July
2001(Romero, 2004).

Discuss two alleged irregularities in the actions between sellers of securities and Enron. It is reasonable and companies have the right to ban smoking on their property. My friend worked for a company that banned smoking in cars, in their company parking lot because they wanted a tobacco free environment, not only did they do the ban on smoking they would do weight loss challenges, and promote walking around the building on breaks. I can see how this would annoy smokers, but I can also see that the company is trying to promote healthier lifestyles and also have more productive workers. I feel that doing this does take away from a person??™s personal freedom. This is a great incentive motivate employees to quit smoking in ???San Antonio-based USAA is giving $200 to each employee and each dependent to help them stop smoking. The money can be used on smoking-replacement gum, patches and other therapies, including acupuncture and hypnosis. USAA is sponsoring smoking-cessation classes and waiving co-pays on drugs used to help people stop smoking. The bans are expected to gain a greater following as more companies look at tobacco-use statistics. Businesses pay an average of $2,189 in workers compensation costs for smokers compared with $176 for nonsmokers, according to the Journal of Occupational and Environmental Medicine in July 2001(Romero, 2004).
Discuss whether or not Enron was liable for the actions of its agents and employees. Enron was definitely liable for the actions of its agents and employees. The whole Corporation was corrupt. Enron and conspirators, engaged in a scheme to deceive the investing public, including Enron??™s shareholders, the SEC, and others, about the true performance, manipulating publicly reports financial results. Enron Omitted to disclose facts necessary to their customers and the public. Enron concealed large losses and other negative information concerning its business, deceiving credit rating agencies in order to maintain an investment grade credit rating, and artificially inflating the share price in of Enron??™s stock, including attempting to stem the decline of Enron??™s share price in 2001.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

?
References
Elger, D. (n.d.). Should Smoke Breaks Be Regulated. streetdirectory.com. Retrieved November 29, 2010, from http://www.streetdirectory.com/travel_guide/20383/careers_and_job_hunting/should_smoke_breaks_be_regulated.html
Romero, C. L. (2004, March 25). Employers Crack Down on Smokers Banning Smoking on Company Property [03/25/04]. Action on Smoking and Health ASH. Retrieved November 29, 2010, from http://no-smoking.org/march04/03-25-04-3.html

Leave a Reply

Your email address will not be published. Required fields are marked *

x

Hi!
I'm Martha!

Would you like to get a custom essay? How about receiving a customized one?

Check it out